Bel Fuse Inc. (NASDAQ:BELFA)(NASDAQ:BELFB) today
announced preliminary unaudited financial results for the second
quarter and first six months of 2012. The Company also announced a
stock buyback program of up to $10.0 million of Class B common
shares.
Second Quarter Highlights
- Sales for the second quarter of 2012
decreased 7.5% to $73.2 million compared to $79.2 million for the
second quarter of 2011, but increased 11.7% sequentially compared
to $65.6 million for the first quarter of 2012.
- GAAP net earnings for the second
quarter of 2012 were $1.5 million, or $0.11 per diluted Class A
share and $0.13 per diluted Class B share.
- Made progress in streamlining
operations by adopting a restructuring program expected to save
approximately $4.2 million annually with full implementation
expected by the end of the year.
- Launched a new website to better serve
customers and investors.
- Board authorizes common share buyback
program.
CEO comments
Daniel Bernstein, Bel's President and CEO, said, "Bel's
operating profit has now increased for two consecutive quarters,
despite continued pressure on margins due to lower volumes and
increases in certain material and labor costs that have outstripped
price increases during the past year. The decrease in sales in the
second quarter, compared to the second quarter of 2011, was
concentrated in our modular products group.
"Bel has recorded pre-tax expenses related to our corporate
restructuring program of about $0.4 million in the first half of
2012. We currently estimate an additional $4.1 million in pre-tax
expenses associated with these steps in the second half of the
year. We expect the program to reduce our operating costs by
approximately $4.2 million annually once it is fully implemented.
We expect full implementation by the end of this year.
"As part of this program, we recently announced that we will
close our Cinch North American manufacturing facility in Vinita,
Oklahoma by year end, and move the operation to a new facility in
McAllen, Texas, just across the Mexican border from Reynosa where
we already have a factory that does some of the processing for many
of the Vinita parts. Having our facilities closer together will
lower our transportation and logistics costs, as well as reduce
lead-times for our customers. We also are taking a variety of
overhead cost reduction steps at our facilities in Asia, which we
expect to benefit our operating results beginning in the third
quarter. The amount of these savings and the cost to implement them
are not yet fully developed, but they will be in addition to the
costs and savings mentioned above."
Bernstein continued, "Product development in non-commodity areas
is key to the success of our growth strategy. Last month we opened
a technical office in Toulouse, France to support sales of Cinch's
next-generation fiber optic technology products to the European
aerospace industry. Together with the recent acquisition of Gigacom
Interconnect AB and its EBOSA® expanded beam fiber technology, our
new Toulouse technical office in the center of the European
aerospace industry advances our strategy to focus on growth
opportunities in military and aerospace markets. The EBOSA
technology allows us to offer connector products that support our
customers' critical performance requirements for higher data
transfer speeds and lower weight. In addition to our own product
development efforts, we are talking to other connector suppliers
regarding the incorporation of our EBOSA technology into their
products. We are optimistic about these new growth
opportunities.
"We also are exploring several potential acquisitions
representing a total of about $80 million in revenue that we
believe will strengthen our product offerings and help us reduce
costs. We expect a final decision on these potential transactions
in the third quarter of 2012."
Bernstein also announced that Bel's Board of Directors has
authorized the repurchase of up to $10.0 million of the Company's
Class B common shares in open market, privately negotiated or block
transactions at the discretion of Bel's management. The Board
believes that Bel's common stock represents an attractive
investment in light of the Company's opportunities, improving
profitability, the benefits expected to accrue from its current
cost reductions and strong cash position.
Second Quarter Results
For the three months ended June 30, 2012, net sales decreased to
$73,222,000 compared to $79,173,000 for the second quarter of
2011.
Cost of sales increased slightly to 83.4% of sales for the
second quarter of 2012, compared to 82.6% of sales for the second
quarter of 2011, primarily because selling prices have not kept
pace with the increase in wages in China.
Operating income for the second quarter of 2012 increased to
$2,363,000, compared to $160,000 for the second quarter of 2011.
Excluding costs detailed in the table reconciling GAAP to non-GAAP
financial measures included in this release, non-GAAP operating
income was $2,568,000 for the second quarter of 2012, compared to
$3,205,000 for the second quarter of 2011.
Net earnings for the second quarter of 2012 were $1,463,000,
compared to a net loss for the second quarter of 2011 of
$574,000.
Excluding the charges detailed in the table reconciling GAAP to
non-GAAP financial measures mentioned above, non-GAAP net earnings
for the second quarter of 2012 were $1,918,000. This compares to
non-GAAP net earnings for the second quarter of 2011, excluding
charges, of $2,088,000.
Net earnings per diluted Class A common share for the second
quarter of 2012 were $0.11, compared to a net loss per Class A
common share of $0.05 for the second quarter of 2011. Adjusted to
exclude the amounts referenced above, non-GAAP net earnings per
diluted Class A common share were $0.15 for the second quarter of
2012, compared to $0.17 for the second quarter of 2011.
Net earnings per diluted Class B common share were $0.13 for the
second quarter of 2012, compared to a net loss per Class B common
share of $0.05 for the second quarter of 2011. Adjusted to exclude
the amounts referenced above, non-GAAP net earnings per diluted
Class B common share were $0.16 for the second quarter of 2012,
compared to $0.18 for the second quarter of 2011.
Balance Sheet Data
As of June 30, 2012, Bel reported working capital of
$165,641,000, including cash, cash equivalents and marketable
securities of $87,363,000, a current ratio of 4.8-to-1, total
long-term obligations of $13,679,000, and stockholders' equity of
$222,557,000. In comparison, at December 31, 2011, Bel reported
working capital of $165,264,000, including cash, cash equivalents,
and marketable securities of $93,972,000, a current ratio of
4.9-to-1, total long-term obligations of $13,406,000, and
stockholders' equity of $221,080,000.
First Half Results
For the six months ended June 30, 2012, net sales decreased to
$138,783,000 compared to $150,576,000 for the first half of 2011.
Net earnings for this year's first half were $2,339,000, compared
to net earnings of $2,670,000 for the first half of 2011.
Net earnings per diluted Class A common share for the first six
months of 2012 were $0.18, compared to $0.21 for the same period of
2011. Adjusted to exclude various amounts, detailed in the
reconciliation table included in this release, non-GAAP net
earnings per diluted Class A common share were $0.24 for the first
six months of 2012, compared to $0.44 a year earlier.
Net earnings per diluted Class B common share for the first six
months of 2012 were $0.20, compared to $0.23 for the same period of
2011. Adjusted to exclude the amounts referenced above, non-GAAP
net earnings per diluted Class B common share were $0.26 for the
first six months of 2012, compared to $0.47 a year earlier.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To
participate in the call, dial (720) 565-0088, conference ID
#12329359. A simultaneous webcast is available from the
Investors link under the "About Bel"
tab at www.BelFuse.com. The webcast
will be available for replay for a period of 20 days at this same
Internet address. For a telephone replay, dial (404) 537-3406,
conference ID #12329359, after 2:00 p.m. EDT.
About Bel
Bel (www.belfuse.com) and its
divisions are primarily engaged in the design, manufacture, and
sale of products used in networking, telecommunications, high-speed
data transmission, commercial aerospace, military, transportation,
and consumer electronics. Products include magnetics (discrete
components, power transformers and MagJack® connectors with
integrated magnetics), modules (DC-DC converters, integrated analog
front-end modules and custom designs), circuit protection
(miniature, micro and surface mount fuses) and interconnect devices
(micro, circular and filtered D-Sub connectors, passive jacks,
plugs and high-speed cable assemblies). The Company operates
facilities around the world.
Forward-Looking Statements
Except for historical information contained in this press
release, the matters discussed in this press release (including the
statements regarding the effects and costs of, and the anticipated
savings resulting from, Bel's streamlining activities, the time
required to implement such streamlining activities, Cinch's place
in the aerospace market, anticipated changes in product offerings
and the Company's ability to support more effectively its growing
international customer base) are forward looking statements that
involve risks and uncertainties. Actual savings from the
streamlining activities and the relocation from Vinita could
materially differ from the amounts that the Company has projected,
due principally to uncertainties associated with modifying existing
approaches to operations. Among the factors that could cause actual
results to differ materially from such statements are: the market
concerns facing our customers; the continuing viability of sectors
that rely on our products; the effects of business and economic
conditions; capacity and supply constraints or difficulties;
product development, commercializing or technological difficulties;
the regulatory and trade environment; risks associated with foreign
currencies; uncertainties associated with legal proceedings; the
market's acceptance of the Company's new products and competitive
responses to those new products; and the risk factors detailed from
time to time in the Company's SEC reports. In light of the risks
and uncertainties, there can be no assurance that any
forward-looking statement will in fact prove to be correct. We
undertake no obligation to update or revise any forward-looking
statements.
(tables attached)
BEL FUSE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(000s omitted, except for per share
data)
Three Months Ended Six Months Ended
June 30,
June 30,
2012
2011
2012
2011
(unaudited)
(unaudited)
Net sales
$
73,222
$
79,173
$
138,783
$
150,576
Costs and expenses:
Cost of sales
61,051
65,368
116,183
122,500
Selling, general and administrative
9,496
10,421
18,285
20,478
Litigation charges
26
3,224
26
3,224
Restructuring charge
245
--
382
--
Loss on disposal of property, plant and
equipment
41
--
110
--
Total costs and expenses
70,859
79,013
134,986
146,202
Income from operations
2,363
160
3,797
4,374
Impairment of investment
(478
)
--
(478
)
--
Gain on sale of investment
--
119
--
119
Interest income and other, net
77
93
153
161
Earnings before provision for income
taxes
1,962
372
3,472
4,654
Provision for income taxes
499
946
1,133
1,984
Net earnings (loss) $ 1,463 $ (574 ) $ 2,339 $ 2,670
Earnings (loss) per Class A common share
basic and diluted
$ 0.11 $ (0.05 ) $ 0.18 $ 0.21
Weighted average Class A common shares
outstanding basic and diluted
2,175 2,175 2,175
2,175
Earnings (loss) per Class B common share
basic and diluted
$ 0.13 $ (0.05 ) $ 0.20 $ 0.23
Weighted average Class B common shares
outstanding basic and diluted
9,677 9,583 9,654
9,554
CONDENSED CONSOLIDATED BALANCE SHEET
DATA
(000s omitted)
June 30,
Dec. 31,
June 30,
Dec. 31,
ASSETS
2012
2011
LIABILITIES & EQUITY
2012
2011
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Current assets
$
209,551
$
207,689
Current liabilities
$
43,910
$
42,425
Property, plant & equipment, net
37,656
39,414
Noncurrent liabilities
13,679
13,406
Goodwill and intangibles
17,316
15,040
Other assets
15,623
14,768
Stockholders' equity
222,557
221,080
Total Assets
$
280,146
$
276,911
Total Liabilities & Equity
$
280,146
$
276,911
BEL FUSE INC. AND SUBSIDIARIES NON-GAAP MEASURES (unaudited)
(000s omitted, except for per share data)
Three Months Ended June 30, 2012 Six Months Ended
June 30, 2012 Income
from
operations
Net
earnings(2)
Net earnings per
Class A common
share - diluted(3)
Net earnings per
Class B common
share - diluted(3)
Income
from
operations
Net
earnings(2)
Net earnings per
Class A common
share - diluted(3)
Net earnings per
Class B common
share - diluted(3)
GAAP measures $ 2,363 $ 1,463 $ 0.11 $ 0.13 $ 3,797 $ 2,339
$ 0.18 $ 0.20
Restructuring charge, severance and
reorganization costs
170 127 0.01 0.01 494 328 0.03 0.03 Litigation charges 26 16 -- --
26 16 -- -- Fraud restitution (72 ) (45 ) -- -- (72 ) (45 ) -- --
Loss on disposal of property, plant and
equipment
41 25 -- -- 110 68 0.01 0.01 Acquisition and other related costs 58
36 -- -- 101 63 0.01 0.01
Impairment of Pulse shares, net of income
tax
-- 296 0.02 0.03
-- 296 0.02
0.03 Non-GAAP measures(1) $ 2,568 $ 1,918
$ 0.15 $ 0.16 $ 4,456 $ 3,065 $
0.24 $ 0.26 Three Months Ended June 30,
2011 Six Months Ended June 30, 2011 Income
from
operations
Net
(loss)
earnings(2)
Net (loss) earnings
per Class A common
share - diluted(3)
Net (loss) earnings
per Class B common
share - diluted(3)
Income
from
operations
Net
earnings(2)
Net earnings per
Class A common
share - diluted(3)
Net earnings per
Class B common
share - diluted(3)
GAAP measures $ 160 $ (574 ) $ (0.05 ) $ (0.05 ) $ 4,374 $
2,670 $ 0.21 $ 0.23 Severance and plant closure costs -- -- -- --
135 92 0.01 0.01 Litigation charges, net 2,824 2,599 0.21 0.22
2,824 2,599 0.21 0.22 Costs associated with Pulse proxy initiative
221 137 0.01 0.01 267 166 0.01 0.01
Gain on sale of Pulse shares, net of
income tax
-- (74 ) (0.01 ) (0.01 )
-- (74 ) (0.01 ) (0.01 )
Non-GAAP measures(1) $ 3,205 $ 2,088 $ 0.17 $
0.18 $ 7,600 $ 5,453 $ 0.44 $ 0.47
(1) The non-GAAP measures presented above are not
measures of performance under accounting principles generally
accepted in the United States of America ("GAAP"). These measures
should not be considered a substitute for, and the reader should
also consider, income from operations, net earnings (loss),
earnings per share and other measures of performance as defined by
GAAP as indicators of our performance or profitability. Our
non-GAAP measures may not be comparable to other similarly titled
captions of other companies due to differences in the method of
calculation. Based upon discussions with investors and analysts, we
believe that the reader's understanding of Bel's performance and
profitability is enhanced by reference to these non-GAAP measures.
Removal of amounts such as charges for restructuring, severance and
reorganization, litigation charges, fraud restitution, losses on
the disposal of property, plant and equipment, gains and losses
related to marketable securities and acquisition-related costs
facilitates comparison of our results among reporting periods. We
believe that such amounts are not reflective of the relevant
business in the period in which the gain or charge is recorded for
accounting purposes. (2) Net of income tax at effective rate
in the applicable tax jurisdiction. (3) Individual amounts
of earnings (loss) per share may not agree to the total due to
rounding.
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jul 2023 to Jul 2024